Bitcoin (BTC) had a volatile week, reaching a new all-time high of $73,777 before experiencing a sharp decline to around $64,500. At the time of publication, Bitcoin is expected to end the week with a marginal decrease of about 1% compared to the previous week’s close.
Analysts believe that the decline in Bitcoin’s price may attract strong buying from investors of the spot Bitcoin exchange-traded fund. Thomas Fahrer, CEO of cryptocurrency-focused reviews portal Apollo, referred to the fall as a “Bear Trap.”
The strength of the rebound will provide insight into whether the correction has ended or not. A weak recovery suggests continued selling pressure from bears, which increases the possibility of a deeper pullback. Conversely, a strong bounce indicates aggressive buying at lower levels and enhances the likelihood of an uptrend resumption.
The question arises as to whether Bitcoin’s correction will lead to a recovery in select altcoins. Let’s take a look at the top 5 cryptocurrencies that appear strong on the charts.
Bitcoin’s price analysis reveals a sharp correction from $73,777 on March 14, breaking below the support line of the ascending channel pattern on March 16. Bulls are attempting to stall the decline at the 20-day exponential moving average ($65,564), but they may face resistance at the breakdown level from the channel. If the price sharply turns down at the current level, the risk of a fall increases. If the 20-day EMA is breached, the BTC/USDT pair could drop to $59,000 and then to the 50-day simple moving average ($55,303). To prevent a downside, bulls need to push the price back inside the channel, indicating strong buying at lower levels. A break and close above $73,777 would signal the resumption of the uptrend, with a potential rally to $80,000.
Moving averages on the 4-hour chart have experienced a bearish crossover, but the relative strength index (RSI) has risen sharply, suggesting a reduction in selling pressure. The 20-EMA is likely to witness a battle between bulls and bears. A sharp turn down from the 20-EMA would indicate bears selling on rallies, possibly causing the pair to slide to the strong support at $64,500. A break and close above the channel’s support line would indicate strength, potentially leading to a climb to $70,650 and later to $72,420.
Near Protocol (NEAR) has experienced a pullback in an uptrend, indicating profit-booking by short-term traders. The NEAR/USDT pair has found support near the 50% Fibonacci retracement level of $6.28, which is a positive sign for bulls. If the rebound is sustained, the pair may retest the overhead resistance of $9.01, potentially resuming the uptrend. The next target on the upside is $10.50. However, if the price turns down from the overhead resistance, it suggests that traders are selling on rallies, and the pair may decline to the 20-day EMA ($6.18). A break below the 20-day EMA could initiate a deeper correction.
On the 4-hour chart, bulls are trying to maintain the price above the moving averages, indicating strong buying at lower levels. If the price stays above the 20-EMA, it suggests that the correction may be over and the pair could retest $9.01. However, if the price dips below the 20-EMA, it indicates strong selling on rallies and may lead to a drop to the strong support at $6.50.
Aptos (APT) experienced a sharp decline from $15.70 on March 16 but found support above the 20-day EMA ($12.90), indicating buying at lower levels. The rising 20-day EMA and the positive RSI suggest that bulls have the advantage. If the price remains above $15.70, the APT/USDT pair may indicate the start of the next leg of the uptrend, with a potential rise to $16.75 and then $18.69. However, if the price turns down and breaks below the 20-day EMA, it suggests that relief rallies are being sold, indicating the start of a corrective phase that could reach the 50-day SMA ($10.73).
On the 4-hour chart, moving averages have flattened out, and the RSI is just above the midpoint, suggesting range-bound action in the short term. The pair may swing between $15.81 and $12 for some time. A close above the range would indicate that the bulls have absorbed the supply, potentially starting the next leg of the uptrend. Conversely, if the price turns lower and breaks below $12.92, the pair may start a correction to $12 and then $11.50.
Render (RNDR) corrected to the 20-day EMA ($10.02), but the bulls defended the support, indicating positive sentiment and buying on dips. The bulls pushed the price above the $12.78 resistance on March 17, signaling the start of the next leg of the uptrend. If the price remains above $12.78, the RNDR/USDT pair could rise to $16.81. However, a drop below the solid support at $12 would indicate weakness and provide an opportunity for bears to start a correction. A break below the 20-day EMA could accelerate selling and lead to a decline to the 50-day SMA ($7.09).
On the 4-hour chart, the failure to sink and maintain the price below $10 attracted solid buying from bulls. Momentum picked up after the price closed above the overhead resistance at $12. If the price stays above $12, the uptrend is likely to continue. However, bears may attempt to drag the price back below $12, indicating a possible bull trap. The pair may then decline to $10.
Maker (MKR) resumed its uptrend on March 17 after consolidation, indicating that bulls remain in control. The MKR/USDT pair could rise to $3,580 and potentially $4,000, where strong defense from bears is expected. The uptrend may continue if bulls do not relinquish much ground from $4,000. A slide below $2,976 would indicate weakness and rejection of higher levels, potentially leading to a drop to the 20-day EMA ($2,525). A break below this support would favor bears.
On the 4-hour chart, bulls are attempting to sustain the pair above the ascending channel pattern. If successful, the pair may gain momentum and climb toward $3,725. However, if the price fails to stay above the channel, it suggests a possible bull trap, and the pair may slide back into the channel. A rebound off the 20-EMA would prompt bulls to make another attempt to push the pair above the channel. Otherwise, a drop to the support line is likely.
This article does not provide investment advice or recommendations. Readers should conduct their own research when making investment decisions as every investment and trading move carries risks.